Dell Financial Services is prepping its first equipment-lease securitization of the year, with a transaction that slightly dilutes the concentration of large-enterprise contracts among its obligors.

Dell Equipment Finance Trust 2016-1 will feature $909 million in asset-backed notes supported by the scheduled payments on equipment leases and loans originated by DFS, a unit of Dell.

The pool includes a contract balance of $980.05 million among 17,019 receivables that carry an average balance of $57,586. The average seasoning is 8.46 months on the loans and leases with average tenors of 40 months.

The transaction is structured with seven notes granted provisional ratings by Standard & Poor’s. At the top of the capital stack is a $302.6 million series of one-year duration Class A-1 notes that have an ‘A-1’ structured finance rating. A two-year tranche of Class A-2 notes due 2018 is sized at $298.4 million, and is rated ‘AAA’ as is a $196.3 million Class A-3 slice due 2021.

The senior notes have a credit enhancement of 19.65%, including an initial overcollateralization cushion of 7.25% and a target OC of 10.9% - each of which are below that of the previous 2015-2 securitization.

Rates are to be determined by the time the deal closes July 20.

The subordinate notes include a Class B (‘AA’) tranche totaling $33.33 million due 2021; a Class C (‘A’) tranche for $38.7 million, due 2021; and a Class D (‘BBB’) tranche for $39.7 million, due 2022.

RBC Capital Markets is the lead underwriter for the deal.

The securitization is the fourth equipment lease transaction issued by the DFS trust.

While harboring a high obligor concentration of 60.5% in its public and large-enterprise segment, the concentration has been reduced with a smaller percentage (38.54%) of large-enterprise contracts than the trust’s last securitization that filled nearly 50% of its pool with large-scale deals.

A lower percentage of the pool is tied to the top 10 obligors (24% vs. 2015-2’s 28.19% concentration) and there is a greater percentage of medium-sized business segment contracts (36.55% vs. 31.28%) compared to last year, according to S&P’s presale report.

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